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Employers need certainty in these uncertain
times
House Republicans object to increased
payroll taxes on employers, fear more job losses will result
Note to editor: House Republicans sent a
letter to the governor regarding this issue last week.
House Republican Leader Richard DeBolt and
Rep.
Cary Condotta, Republican leader on commerce and labor
issues, had the following to say about the state Department of Labor and
Industries’ (L&I) announcement of a proposed 7.6 to 9.3 percent increase
to employer workers’ compensation payroll taxes for 2010:
Statement from House Republican Leader Richard DeBolt,
R-Chehalis:
"The
Department of Labor and Industries’ decision to raise tax rates in this
economy, and after our unemployment rate rose to 9.2 percent, is a prime
example of an out-of-touch leadership in Washington state. It is
disappointing to see government agencies further burden our struggling
employers.
"The
agency needs to ask if its policies will help or hurt employers and
employees. A proposed 7.6 percent increase would cost employers $117
million in higher payroll taxes. The total cost of the agency's workers'
compensation proposal is $270 million, leaving $153 million to be paid
for using the agency's contingency fund, which is already below the
reserve limit. This increase will take money out of the pockets of
employers who could better use it to create jobs or give employees pay
raises to cover the rising costs of food, health care and other basic
necessities.
"Before
increasing taxes on employers to pay for a broken system, state leaders
and agencies should take into account the impact the higher costs will
have on our economy and job creation. It’s time the state becomes a
partner with employers and employees, not a receptacle for more and more
of their hard-earned money."
Statement from Rep. Cary Condotta, R-East Wenatchee:
"As a
small-business owner, I know firsthand the difficult choices that have
to be made to keep employees on the payroll and keep the storefront
open. An increase in workers’ compensation taxes, as was announced
today, will push my business to the brink. Employers are making tough
decisions to trim waste every day, and L&I should be doing the same.
"Before
we give this monopoly, state-run insurance company more money, critical
reforms must happen. The agency needs to get time loss and pension
growth under control and in-line with other states if we want to make
our state more competitive and attractive to employers – the people who
create jobs. What we are getting instead is uncertainty and the fear of
looming tax increases in January, from workers’ compensation taxes to
minimum wage, which will only serve as job-killers. While workers’
compensation tax rates are falling around the country, L&I is proposing
a multi-million tax increase at the worst possible time. Any tax
increase in this economy is wrong.
"No
matter when the recovery comes, the more the state piles on increased
costs and taxes, the worse our unemployment outlook will be. After 27
years in business, I am downsizing my company, and even if the economy
recovers, I will likely never expand again because of the increasing
burdens the state is placing on employers."
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For more information, contact:
Lisa Fenton, Communications
Director - (360) 786-7728
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